Gold – Holds steady with limited losses following U.S. CPI data
Gold dipped in an initial reaction to June’s stronger-than-expected U.S. inflation data, which reinforced the Federal Reserve’s cautious stance on interest rates, as policymakers await clearer signs of how tariffs are affecting consumer prices.
The decline pushed prices below key support around the \$3340 area (an hourly higher base and 38.2% Fibonacci retracement of the \$3283–\$3374 rally), reaching a session low of \$3334. However, a subsequent rebound formed a long-tailed hammer candle on the hourly chart, suggesting that the \$3340 level has not yet been decisively broken. A sustained drop below this pivot is needed to confirm a bearish failure swing and signal a trend reversal.
On the flip side, a confirmed upside reversal is also lacking and would require a bounce and hourly close above at least \$3350.
Despite the inflation-driven drop, safe-haven demand remains supported by ongoing uncertainty around President Trump’s tariffs, helping to cushion the downside for now.
The broader trend remains bullish, with prices holding above the rising daily Ichimoku cloud and 14-day momentum still in positive territory, though short-term technical signals are mixed.
A break above \$3353 would offer an early bullish signal, potentially leading to a retest of \$3365 (today’s high) and a renewed attempt at the \$3374 top. Alternatively, a firm break below \$3340 would shift the near-term outlook to bearish.
Res: 3353; 3365; 3374; 3392
Sup: 3340; 3337; 3332; 3328
